[Banyonite]

I didn't lie on my tax returns, either. In 2011 the IRS kicked off an audit, saying that I owed a little more than $50k in unpaid taxes because of inappropriate deductions. (The auditor was a contractor, who's company I found out later, was paid based upon "successful" claims against taxpayers after an audit.)

After contacting the accountant that does our taxes and asking her to represent us, she showed up in the guy's cubicle, filed the paperwork for dispute, and started the audit process.

A week after she showed up to represent us, we received a letter from the IRS stating that we now owed north of $100k. Felt like intimidation to me. After a week of our accountant going over each and every scrap of paper with this guy, turned out that the IRS owed us $2300, which we agreed to give to our accountant for representing us. The contract auditor, according to our accountant, was belligerent and abusive. (edit- we wouldn't have had a chance against this guy without our accountant)

Yes, there are plenty of people that lie on their returns, but I've come across many, many stories like mine as well. Telling the truth on a return is no guarantee that the IRS will not audit you, and I believe that uncalled-for audits are much more prevalent than is generally believed.

(Edit) Not exactly the same thing, but when you say "... because I don't lie on my tax returns." it reminds me of "If you've done nothing wrong, you don't have anything to worry about".

The question I ask to both of those statements is "According to whom?"

[LorenPechtel]

My experience with the IRS has been that they always assume the worst over trivial errors--you report earning $4312 when their records say $4321 and they're after you for the whole $4321 rather than just the $9 of the error.

They also seem to be unable to accept zebras. I had a run-in with them in the 90s because they lost record of having gotten some money. Took me 6 months to convince them that they really did get that money. In the 80s my mother had a run in with them because of "unreported income"--in hindsight, probably an illegal using her SS#. I went off to college before it was resolved and never did find out what happened.

On the other hand, I know someone who was substantially dinged on the hobby loss rules. Overall, I'm sure the IRS was right, he was engaging in wishful thinking that it was a viable business but I know he feels wronged by the IRS. (To me, he's wronged by Congress, the hobby rules are very unfair. I'd allow income-producing hobbies to file on C but losses are carried and can't be claimed.)

[albatross13]

Now this is a very sobering anecdote- I am legitimately sorry you had to deal with this. Even more disgusting is that it was farmed out to a company that is incentivized to bully money out of people.

Thanks for sharing.